FE Report
The securities regulator has given its consent to United Power Generation & Distribution Company Limited (UPGD) to go public under book building method (BBM), after suspending it in January 2011, officials said.
According to another decision of the Bangladesh Securities and Exchange Commission (BSEC), Southeast Bank Limited has been allowed to issue Tk 3.0 billion Subordinate Floating Rate Bond.
However, BSEC has turned down the rights offer proposals of Bangladesh Building System Limited, Central Pharmaceuticals Limited, Mozaffar Hossain Spinning Mills Limited and JMI Syringes & Medical Devices Limited.
The decisions were taken at a commission meeting, held at the regulator office Tuesday.
After the 2010-11 stock market debacle, the government postponed BBM, as the companies allegedly siphoned off a significant amount of money from the stock market through over-pricing.
As per the BSEC approval, UPGD will offload 33 million ordinary shares at an offer price of Tk 72, including a premium of Tk 62 for each Tk 10 share.
The company will raise fund worth above Tk 2.37 billion for redemption of its preference shares, repayment of bank loans, and meeting IPO processing expenses.
Successful institutional investors will get 40 per cent of the offloaded shares, whereas small investors, mutual funds (MFs), non-resident Bangladeshis (NRBs) and general investors will get the remaining 60 per cent shares.
As per the audited financial statement for the year ended on December 31, 2013, the company's earning per share (EPS) and net asset value (NAV) are Tk 5.98 and Tk 23.64 respectively.
LankaBangla Investments is the issue manager and ICB Capital Management is the registrar to the issue.
On the other hand, as per the BSEC approval, Southeast Bank will issue Tk 3.0 billion bond to boost its capital base and fulfill the requirements of Basel-II and Tier-2. The tenure of the bond will be seven years.
The characteristics of the bond are: non-convertible, unsecured and floating rate subordinate. Its yield to maturity/coupon rate will vary from 11.50 per cent to 14.0 per cent, said the BSEC officials.
The offer price of each unit of the bond is Tk 1.0 million. Standard Chartered Bank is the mandated lead arranger and Green Delta Insurance is the trustee of the bond.
Meanwhile, BSEC has ruled out the rights offer proposals of Bangladesh Building, Central Pharmaceuticals and Mozaffar Hossain Spinning, as the companies have not taken enough time after being listed with the exchanges.
The regulator has rejected the same proposal of JMI Syringes, as it also has not taken enough time after being re-listed with the exchanges.
"It could be helpful for investors to take decision about the rights offer, if the companies took enough time after their listing and re-listing. That's why the regulator has turned down their rights offer proposals," the officials added.
mufazzal.fe@gmail.com
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